What Aramco's Big Reveal Means for the Debt Market

Saudi Aramco is officially the world's most profitable company, generating $111 billion annually, nearly double that of Apple. This profitability has led to high demand for its debt, with potential yields lower than Saudi Arabia's sovereign debt. Aramco plans to raise $10 billion to acquire SABIC, amidst favorable market conditions and a low debt load compared to other oil companies. Investors are excited about the bonds, which will range from 3 to 30 years in maturity, and there is speculation that Aramco could raise up to $35 billion.

What is the significance of Saudi Aramco being recognized as the world's most profitable company?

• It indicates a decrease in oil prices.

• It suggests high demand for its debt.

• It means the company will stop issuing bonds.

• It shows a decline in its annual earnings.

Why is Saudi Aramco planning to raise $10 billion?

• To invest in renewable energy.

• To expand its operations in Europe.

• To acquire SABIC.

• To pay off existing debts.

How does Saudi Aramco's annual earnings compare to Apple's?

• It earns about the same as Apple.

• It earns three times more than Apple.

• It earns less than Apple.

• It earns almost twice as much as Apple.

What is notable about Saudi Aramco's debt load?

• It is increasing rapidly.

• It is low relative to its capital.

• It is the highest among oil companies.

• It is very high compared to its capital.

What is the potential amount Saudi Aramco could raise in bonds?

• $20 billion

• $50 billion

• $35 billion

• $10 billion